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tv   Street Signs  CNBC  February 20, 2013 2:00pm-3:00pm EST

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fed minutes are out in less than 30 seconds. big market movers so don't change the channel, tyler. >> thank you, michelle. that will do it for "power lunch." >> "street signs" begins right now. all right. hey. hi, brian, how are you? welcome to "street signs," everybody. big red flags on housing, owens cornings, their ceo is here. bob, who says buy home builders is envogue, is also here. see what his new call is. plus, we will party like it's y2k. minutes of the january 29, january 30 minutes are out
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indeed and review says they are pretty positive, folks. here you go. fomc. though it notes at the top that weather did play a part in a slow down, it says that was weather related and the rest of the minutes appear to be fairly optimistic. private domestic grew at a quote solid rate. noting that spending on equipment and software quote rows briskly in the fourth quarter and conditions improved between december and january meetings. positive there. they note that household income rose considerably though it says that it is likely do to tax-related incoming sell racing. all of the dividends we talked about paid before tax rates went up. federal government didn't spend as much as previous quarter but in fact the fed notes that and says it is likely due it a drop in defense spending. gdp numbers confirmed it. fed agreed to keep up $85
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million a month in mortgage backed security and treasury. members had varying timing and amount of asset buying. ester george, one of the newest members, did consent over to future imbalances. the folks are more optimistic about the economic outlook pap positive fed minutes. let's break it down right now. we have david kelly joining us. david, all in all looks like a read. very, very positive on this. do you believe though, this will cause the fed to either hike rates or slow or stop their asset purchases before they said they would? >> they are not clear exactly when they are going to do either of those things. i think later on this if the economic numbers continue to be good or okay. i think they will try and phase out this asset purchase plan. so i don't think they will continue to buy $85 billion per month all the way through december.
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i think by the middle of this year they will start talking about phasing that down. and then sometime in 2014 you can get a rate hike. i think it is all behind the ball here. there is a danger that long-term rate move up faster than the federal would like. they are perceived as being too dubbish here. >> what are the implications, david. >> pretty positive. not just the u.s. central bank. all central banks around the world are basically fixed again. soin vestors cannot make a descent return. so long as you get minutes like these from federal reserve where they say things are improving, it doesn't make sense to put money away long term and long-term low yielding bond where you can get better -- get dividend deals higher on government bond. makes sense to put money into treasuries. i think it is still relatively positive for the equity market. it is committed to keeping rates low. >> the fed, if you bet against
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them, you've got your your butt kicked the last u years. if we see the fed begin to note and they didn't now, but when they do, and they will eventually, when they pull back, is that the sign to sell stocks? >> i don't think so. it depends on the pace which rates go up and how orderly it is. but i'm concerned we are far away from equilibrium. there should not be asset control over long-term rates. they convince people that they do and the most dangerous time. when the most dangerous time is when they reform. most dangerous time for federal reserve is months of when it is clear to everybody they are beginning to titan or take about tightening. how fast do your long-term rates go up then? could be a temporary problem. but if you get higher rate because the economy is doing
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better, that will push money away from fixed income and help the equity market out. >> and we are seeing strength in the dollar now as well. >> thank you for joining us david kelly. in the meantime, home builder stocks are taking a beating today after the commerce department reported an 8.5% in housing starts last month. is the stock a drying up or sell for more than a year now. here is rbc capital markets. he has the boom more than a year ago. so hope we get it right this time as well. is the housing recovery stall out here? >> no, we are bullish. what we are seeing today is growing pains. we go from very depressed base. we expect the growth to continue. sure, coming in at 890,000. er with looking for 915,000 housing starts. december was revised upward to $973,000. all in all, trend is positive
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over year over year basis. there is a breather here for a bit. you will have a pull back. don't get away or take your money out of market. we like home builder equities. >> kirk cameron was hot too. then the career tapers off and you think, i will make the come back, and you don't. how do you know it will pause and come back up. >> the analogy based on kirk. the general view is, we will hit some air pockets on the way rb right? fundamentals disconnected from what expectations and deliveries came in like. if you look at guidance, guidance is in tact. so let's focus on the outlook, not in the rearview mirror. if investors do this, can you get to the other side of the line. you recommend buying builders and adding on dibs. owens corning came out with weaker than expected results, right? i would like to know where their stock taking 8% today, is it a buying opportunity.
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>> our general view on owens corning, armstrong industries and other companies that make things, you have a mixed economic outlook in terms of demand. so you're not going to get the earnings acceleration that you will in the home builders. you also get more inflation. it is good to see how these companies grow back it earnings levels. >> what would you ask the ceo? >> how do you manage achieving or realizing better prices in a slacked environment. >> i have a good idea. ceo of corning is coming up, would you like to stay on and ask him questions. >> i would. >> that add lib television. >> i'm in. >> is there any stock you would avoid at any cost. >> no, we would flip it around. buying today on pull back, we think u.s. gypsum due to favorable raw board. and we like lenar, kbh and on a
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pull back. >> we did a whole segment on, how do you sift through the various housing data point and work out what is the most important to follow. what do you think is most important? >> passing starts. the rest is noise. if you focus on the fundamentals, that starts. pricing reported by builders, that's factual stuff. positive pricing trends are going to continue, better volumes. we still have upside it earnings. >> all right. well, why don't we bring in the ceo of owens corning. >> thank you for joining us, sir. we mentioned guidance is weaker. results are weaker than expected. are you worried at all about the home building boom? stalling out? >> no. no, we are quite optimistic about home building. i know you have bob on the other line. what we have seen is good sustained improvement in home building over the last 12 months. we think that will continue. certainly multifamily housing bounced up and down from month to month and quite a bit weaker
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here in january. strongener december. we think we are in the midst of a real housing recovery. we gave optimistic outlook. we said all of the businesses would improve in 2013. obviously the entire sector is down so that affected our stock today. >> you know, mike, it is great to have you on. just curious, can you touch briefly optimistic outlook. some positive momentum going into 2013. can you touch on your thought on the pricing across your businesses? >> well, obviously, you know, as building materials manufacturer, our key focus on the near term is both volume and margin pricing. we have come through roofing and insulation business through volume. roofing pricing has been more attractive than insulation pricing. what we said today is we are optimistic in roofing prices with 2013. back it a good stable environment with descent margin realization. on insulation we have more work
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to do. we are coming off very low lows. we have a great track record in 2012 of improving that business. 2013 we need to see what we saw in 2012. more volume and better prices. >> we always talk about new home building because that's what you think. but when you sell an existing home, you often fix it up. what it in home sales, roofing and reroofing, what do you see in your business going forward. >> a wonderful observation, glad you brought that up. reroofing clusters around existing home sales. when you buy or sale a house, that the time to put major capital invest noom a home. we are in an environment where existing home sales are recovering and we see bet are home prices. i think people see confidence of putting real investment into their home and we see big repair and remodel type projects start to come into the market.
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reroof will grow in 2013 and a run where we see 10 or 15% growth in reroof demand. >> you are trying to sound optimistic but i would like to know what keeps you up. what is your biggest concern here? >> you know, i think there is two big uncertainties in the world today. one a europe. we have a global business, composites business, which has been effected by the uncertainty in europe and weaker global demand because of weakness in europe. second is, what is going on in washington. there is a lot of discussion about sequester. i don't know what the right policy is. i just know the uncertainty is having an impact on people's willingness to invest in their homes. and it would be great to get the united states on it a path where there is a lot of confidence in the near term and long-term with the success of our economy. >> it's been a pleasure to have you on our show. thank you for sticking around as well, bob. >> sure. >> now over to josh lipton. market flash on hospitality.
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josh? >> couple of names i want it point out. two restaurant chains are appetizing in today's section. road house, with streaks, ribs and chops. same store sales at company-owned restaurant. popping 2.2% so far this year. ruth's is absolutely surging here. up some 8.6% right now. back to you guys. >> all right, josh. thank you very much. on deck, nothing but a taxpayer toga party? shocking stat on defaults and graduation rates. >> later on, tech deja vu. why everything old is new again on the nasdaq. >> i'm diane olick with real estate recovery watch. to my own backyard, washington, d.c. sales up from year ago. prices up 5% but could go up higher as inventory is way off
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down 36%. that's d.c. to find out how your loek market is going, go to our realtycheck.cnbc.com.
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and that, ladies and gentlemen, is santana's song "smooth." number one way back in november 8, 2000. why do we highlight that randomly seeming date? because yesterday was the first time since then the nasdaq closed above 3200 and some
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things have changed and some things stayed the same. with that in mind, here are the biggest market cap companies as of november 2000. take a look at that list. remember, cisco? they are still big. microsoft number two. intel, sun micro. oracle number five. now look at top five as of closing prices last night. apple, google, which didn't even go public for four years later, microsoft, oracle, and amazon.com. >> biggest starts back then were names we know, of course. like microsoft, oracle. who will be major nasdaq players a decade from now? let's ask mark lindon and paul hickey. great to have you in person, by the way. you dragged yourself out of san diego. poor thing. what do you recon, 2023? >> thanks for having me. if you're asking me, i think generally a couple names you don't see.
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amazon, even though it is number five, i think they will be there and i think google will be there. but think linkedin and sales force will be around identity and -- >> you have a man crush on ma'am zon.com, i think. >> i do. i'm not long the stock. but if it is done or up a hundred dollars, you couldn't feel any different. once it guess into those kind of numberses, it is -- >> when you say man crush, that assuming amazon is male. >> well, i'm assuming. >> is there a company in 2023 that hasn't even come on to our radar yet? >> yeah. when you look at it, like you said earlier, google wasn't public then. and facebook, 12 m largest company, didn't even exist. mark zuckerberg was just getting his license back then. there is a real strong possibility that you may have a company that doesn't even exist
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right now that will be shooting up to the top five right now. i agree that -- with howard that amazon will most likely be there. google most likely be there and probably apple will be there. in order to fall out of the top five right now, having to drop another -- losing another two thirds of its value. so i mean, just so large that you will just be -- it will look like microsoft maybe does ten years from now. >> i agree with paul. like apple -- google is getting into stores. i think the car will play out here too. tesla report some time today. i think the car as an operating system and google self driving cars. google made their bets. larry did a great job coming in and not caring about stock pricing. but the market doesn't care. google is not a stock you chase. around earnings they could do anything. any kind of announcement with control over securities. but apple, like paul said, very
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hard to knock them out with retail stores and the fact they will double those stores. very hard to see companies moving beyond ten years. you know, whether monster or dell. they are not there. those were best performing stocks. so hard to predict the next ten years, at the same time, apple is so big they have to fall so far. >> is oracle the most underrated stock out there? doesn't get a lot of attention except when larry ellison buys another yacht or island. yet it's been on the list and it throws off free cash like an old dog kicks off fleas. >> not sexy enough. apart from the yacht, not sexy enough. >> it is sexy enough for him but if you look at richard branson, he lives by himself on an island with his family. i think larry sst opinion where he doesn't have to be number one. he is number one in his mind. so in software, he is number one. and maybe they will push him to the limit where he will care
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again about that war. but he is happy already. a great call like $130 billion or whatever they're at. good job for oracle for staying on for ten plus years. >> there is also dwiter, of course not even listed yet. but that's acan assuming it doesn't get bought before that. >> there is so much talk apple should buy twitter. jim cramer is always talking about that. if they don't get taken out, twitter is such a powerful medium right now, that they are just -- if they do go public they will mon advertise that and make money and you know, it is just so powerful and everybody is using it more and more. can't live without it now. >> but it is a very typical business to scale. as much as twitter is growing international internationally -- even as someone who uses twitter all the time, that it is a hundred
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billion dollars business. >> who would buy it then? >> i think they operated along this whole line. if you're a fireman and you could jump out to a padded floor but they have google and apple and john has an investor in twitter. if you are twitter you get to take more risks than the average start up has and there is a bank after billion dollars to invest with. they are not going away. twitter is an incredible band but i don't see them being on this list. >> paul, i love that company doesn't exist yet. if you don't exist now you will be gigantic and disruptive and there is probably industry like google has, right? which means the world will benefit. that says, if you're right, what space will that company be in? what will they do to get that big in ten years? >> when you think about it, i think you go to the biotech space and you know, companies that can cure and look at
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diseases and us is septemberbility through your gnome profile. there is one break through and you could have a very strong company. >> great point, by paul. biotech led since the bottom of '08. you're right, cancer, heart, those are two things, like the human operating system. and the brain where you're right, trillion dollar company could come. you're right. we said cisco could be it. that was one company. now there is six or seven. >> howard we could have a trillion dollar bill. >> yeah. >> we will have a 10 trillion dollar bill. >> don't confuse it with 1 dollar and give it away by accident. >> next up, coffee company that makes a $4 latte look down right
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zuckerberg and milner is sitting next to zuckerberg and milner's wife is sitting next to him and sergey brin has the glasses. now they are now focused on life sigh sentenche is no sciences. mostly because of challenges in their own families. and seeing medical advances happened. and that's what we are watching for here. and interesting to see what they have to say about and what they have done to do philanthropy in this way. interesting. bill gate have done fill has do
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markets are up to. not particularly moved by the minutes that we just announced a moment ago. nonetheless, with the minutes suggesting they might have to be a slow down of qe before we see a pickup in hiring. the dollar is stronger. up .7 percent. the ten-year yield is marginally higher as well. stocks were lower. let's get straight talk to street talk. >> down 9.2%, investors not able to quote, find a reason. bad pun alert. down five cents, down guided for the year 230 to 240 a share. reuters saying the market gain for smaller competitors, no longer enough to offset demand for gps devices. though garmin did initiate a
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share buy back. look at garmin getting wall oped today. >> let's look also at qualcomm. pretty good call here. >> it is. and what you just said about smart phones. >> yeah. >> makes a difference for qualcomm. the company's extremely well positioned given their lte leadership. that that super fast global technology, blah blah blah. but mira loves that they are almost platform agnostic. in google android, in windows, in blackberry. >> they are everywhere. >> they are everywhere. they are also gaining traction in china. qualcomm, big call. >> millennial media is tanking. >> that is a big tank there. >> 38%. could have had it as disaster de jour. a mobile app company. they see sales below current estimates for this quarter.
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downgrading this stock, cutting price target on the stock to 16 bucks. still, i mean, cutting it to 16 and stock is below 9. folks, this is $23 stock last march. millennial media. >> wow, in about 12 months. this is also -- i wonder what this is saying about the company. >> the founder, michael kors, is selling. there are four or five big time invi insiders, michael kors, the man, and he is not getting out of the company entirely. but selling out about $400 million stake, i think. not bad. this is an all-time high for stock at an increase and full year sales and profit. remains one of the city's top picks. >> one of our favorites on the
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"street signs." where is herb when you need him? jc penney is soaring. does he have to live on that bet? no. >> here folks, listen up, some is something that i don't think has been reported yet. here you go. some wire services out there. not big ones. blogs and then the wire services, i think briefing.com picked up on it. research was out positive on jc penney and things that january same store sales may be flat. i did research. mosaic research in portland, oregon covers jc penney. i reached out to the founder. he said we haven't put out anything. we haven't put anything out, haven'ted a is word. it is hard to find anything. i forwarded him the blog. he said, he didn't know who that was. so maybe there is another mosaic. but michael from mosaic in
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portland said we haven't put out anything about jc penney. >> tread with caution. going head to head with macy's, get this, marcia stewart. courtney reagan has been following this battle. what is going on? >> reporter: mandy, right now the lawyers for j th penny just beginning their opening margeaux umts here in new york state supreme court mind me and really what the dispute is over is whether or not jc penney has the right to sell martha stewart brand of product in certain categories. lawyer for jc penney are saying if macy's wins the consumer will lose. they are also pointing out that macy's did not show the contract supposedly breached in their owning statements. macy's did present opening statements this morning. arguing that j th penny and omni media new of the contractual obligations that martha stewart had with macy's but chose to go
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into it anyway, using unfair business practices. showing how much macy's invested in the branding surrounding martha stewart and how they would in no way enter a contract that would ever allow that browning to be given to another retailer. that goodwill for free. martha stewart omni media, telling cnbc, this is a c contractual dispute. they just told a fancy story. martha stewart is not in court and neither are other ceos. the judge set aside three weeks for this trial. so we are just beginning. >> just getting started. thank you. >> tesla reporting earnings after the bell. stuck covering near all-time highs.
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fresh off the tesla test drives, the three things that investors need to 2340e know, what are those three things. ? >> it has to do with earnings, production and what we see in terms of orders coming in for the new model s with the new pricing structure. let's start with earnings and expectation. they are expected to post a loss of 53% a share. but what's the cash flow rate? we know about a month and a half ago, ceo saying they were cash flow positive for certain few weeks and cash flow positive from there on. what the rate of growth from there? 2013 model will be key. what do they expect? they still expect to deliver 20,000 of them? that's the target they set out and they are producing at that rate wab because then it comes in case. what is the backlog looking like? at one point up around 15 to 20,000 reservations that were there. have they started to bring down that backlog as they increase production and how much has the
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price increased impacted orders? has it slowed down as they have increased prices this year? remember they increased them at calendar year. thoughtses questions we will look nor when they report earnings after the bell and then of course the conference call later this afternoon. guys, a critical report for tesla and critical time for this company as they transition into a big year expected for the model s. might be the year that model s will gain acceptance with the company? and international company as well? is this the game-changing year, do you think? >> i think so. i think it will game acceptance. now the question becomes, when you look out five or six years from now, will we look out and say there is a half million less models on the road and it is not uncommon to see them around? time will tell. does the market change in terms of people being eager to buy electric vehicles? more eager or less eager? these are things you don't know
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at the very beginning. certainly the demand is there now. >> indeed. the way gas prices are going, i'm sure they will begin more interest and awareness. phil, thank you so much and phil, i know you will have an exclusive interview with tesla chairman elon musk. an absolutely must-not miss interview. >> still ahead, gold trading at its lowest lows offier. but there is still money to be made says our guest. plus, a four-star and what you should be in right now when "street signs" comes back. avera, tdd# 1-800-345-2550 i saw the trend. tdd# 1-800-345-2550 it looked really strong. tdd# 1-800-345-2550 and i jumped right on it. tdd# 1-800-345-2550 tdd# 1-800-345-2550 since i've switched to charles schwab... tdd# 1-800-345-2550 ...i've been finding opportunities like this tdd# 1-800-345-2550 a lot more easily. tdd# 1-800-345-2550 like today, tdd# 1-800-345-2550 i was using their streetsmart edge trading platform tdd# 1-800-345-2550 and i saw a double bottom form. tdd# 1-800-345-2550 i called one of their trading specialists tdd# 1-800-345-2550 and i bounced a few ideas off of him.
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coming up own closing bell, courtney reagan just told you about the court battle over martha stewart. we will look at which of the retail stocks is better for your portfolio. it is macy's versus jcp coming up. also, would you want to dress like a postal worker? post offices launching a clothing line as part ofity plan to turn a profit. will it work? we'll debate that. new york city controller, john liu, talks about why he
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want to strip jamie dimon of his j.p. morgan title. >> this is the most important title of the tv hour. she is happy here. >> i'm happy with him too. i'm very democratic when it comes to my co-anchors. >> now to sharon epperson who knows where her loyalty lies. sharon? >> $95 a barrel and worse one day percentage slot we have seen for wti crude oil market in three months time. big slide has been across the board in commodities. stronger dollar factor o for oil and rather positive headlines at iran and talks at western nations and looks at heavy selling in the gold market. gold prices at lowest level since july. er with looking at gold that continues to sell off in electronic trading after the close. as we watch here, gold prices going through the death cross
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where the 50-day moving average below the 200 day average. this is really exacerbating the sell off we see in many markets an traders are saying with prices at these levels, these close below the 17 -- the 1570 level. now we can see prices at 1525. if they go that low we can could see prices fall $100 quickly. >> nothing like a death cross to get things ticking. thank you, sharon. is the gold rush over? michael is here with us. michael has the long-term bull run in gold come to an end? >> i just want to know what the opposite of death cross is? what is it? when it is thering up it's great. i think the big question is yeah, ten-year bull market gold. terrific invest many. i think from the biggest perspective, you have to ask yourself, have we reached peak qe, right?
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globally. have central banks now finding sort of gone as far as they can go with quantitative easing and increasing balance sheets and supply. if so, it will be a negative for gold. i think what we are seeing here is anticipation of that without the data and some of the large etf sellers are preparing holdings. that's clear. >> so you say the big question is have balance sheets peaked. what is your answer and what would one do? >> watch the data. it is easy to anticipate to think, now is the time. it's over. we would rather watch a little bit and see outcomes of still of some of the uncertainty in europe and talk and sequester here in the united states. i'm not so sure if so much has been made in europe and japan. i think the jury is out and i think we are just getting either a normal cyclical sell off or this -- we hold open the
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possibility that this is the death nail for price 6 gold for this cycle, anyway. >> got it. the jury is out. michael, thank you so much. let's welcome in president of edge asset management. jill, we will boogie through. kingdom mortgage one of your picks. i think rich is the smartest in america if not the world. agree or disagree? >> we agree. we like them quite well. and they is done a great job and we expect them to continue to do well going forward. >> stocks up 158% ten years. how much more could it have in it? >> there's definitely room for the jury stocks to move higher and primarily because of this move for the u.s. to push towards more energy independence and we like that play, especially on the long-term. >> is that a counter cyclical oil play or play on the economy, what is it? >> not so obvious plays on energy. what is happening is this -- all this o oil in the u.s. is being
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generated and it has to get somewhere p. so the pipelines are strained for capacity. so where is it going to go? railroads are a great opportunity. and there's track already laid that they can utilize to move that oil to where it needs to go. >> marathon mpc make the case. quickly please jill. >> marathon, same thing. refiners, what has been holding up energy in the u.s., is limited capacity for refiners. they have a long runway ahead of them even though they add great run up last year. >> jill that was good. thank you for joining us. >> did move her through that. more like a hustle than a boogie. >> there you go. >> taxpayer toga party. how america is getting drunk on student loans and maybe has little if nothing to show from it. the patient, presented with
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a hairline fracture to the mandible and contusions to the metacarpus. what do you see? um, i see a duck. be more specific. i see the aflac duck. i see the aflac duck out of work and not making any money. i see him moving in with his parents and selling bootleg dvds out of the back of a van. dude, that's your life. remember, aflac will give him cash to help cover his rent, car payments and keep everything as normal as possible.
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today's thing that makes us go hmmm is $1 billion plus. that's how much stanford university brought in from donations last year. harvard trails stanford, by the way, if you wanted to know taking in only $650 million in 2012. brian. >> meantime, the other side of the college story, shocking new stats on college loan, default and graduation rate, "wall street journal" doing excellent reporting, digging through government data there are many. not one or two folks but many. >> the top five schools were all in puerto rico. these are the five next highest based here in the continental united states. those other default rates, some of the graduation rates below those levels. what's going on here?
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are the students being misled by the schools or borrowing money to party up and not pay up. there's some other organizations. these numbers are scary and disturbing. how do we explain them. unemployment rates are a key defaulter of student loans and students who don't graduate are four times more likely to default than students who do gradua graduate. >> i can understand that if you're in the work force. how can some of these students have a 20% graduation rate? how is that even possible. >> there are schools with single graduation rates and schools that tend to attract different schools and students with higher gpas and lower s.a.t. scores and these students are less likely to graduate.
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>> if i was a prospective student and applying to one of the colleges, would i like to know how high the default rate is, right, and how high the graduation rate is. is this the kind of information made readily available to these prospective students. >> oh, until now it hasn't readily been available, but the observe ma administration released a college scorecard to help families make a trade-off between responsibility and college costs. >> now that information is going to be made available. >> i think so. the students need better quality and disclosures to make better informed decisions. they need financial literary skills and tools to be able to evaluate that information, but i believe college scorecard does a pretty good job of getting that information to a single page. >> we talk about student loans, okay, mark. inevitably people blame the
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banks. it's the bank's fault. okay. if you trace college tuition and the ease of credit coming from the government, right, they track pretty well? colleges know, true or false, they can charge whatever the hell they want because you can borrow the money. >> you can borrow up to the full cost of education through the parent plus loan. the colleges do have this information, but they don't necessarily have information about how many students are overborrowing or what the performance of the student are after they graduate and that's a problem. >> you know what i'm saying is if i'm harvard, next year i could decide to charge $200,000 a year for tuition, and i will still have 40,000 applicants. true or false? >> true. most allegiance students have the power to attract students. >> you know, as an outsider -- >> we're not talking about the most allegiance institutions,
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second and third-tier institutions that nevertheless charge high tuition, and the students don't necessarily graduate, and if they do graduate they are graduating with too much debt. >> at what point is there going to be a tipping point? at what point do you think, mark, like a self-corrective cycle where people realize, you know what? it's not worth it to go to college because the kind of pay that i'm going to get later in life, the kind of job that i'm going to get later in life as a result of college may not be possibly be worth all the debt that i'll have to pay back. >> well, right now we're not really at a tipping point because most students are able to repay their loans. as long as your total student loan debt at graduation is less than your annual income you can afford to pay back the loans in ten years or less. it's when you overborrow that you're going to struggle and i would say perhaps 10% of students are struggling to pay their loans these days. now in 20 years, we may very well have a higher education bubble bursting and colleges failing because they can't
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attract the students. >> too many people going to college? >> no. i think that especially along low-income students we don't have enough going to college. they are being priced out of a college education. >> we'll have you back on to debate that point because we do lack skilled workers, mark, as well. thank you very much. >> you're welcome. >> okay. still ahead, newman's is bringing sexy back, and the major index is extending their loss the last couple of minutes. given up all of yesterday's gains. having the worst day in more than two weeks, but everything is fine. back after this. ♪ [ engine turns over ] [ male announcer ]d the lur and kept turning the page, writing the next chapter for the rx and lexus. this is the pursuit of perfection.
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today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers. we don't let frequent heartburn come between us and what we love. so if you're one of them people who gets heartburn and then treats day after day... block the acid with prilosec otc and don't get heartburn in the first place!

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